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Housing and real estate are going through a period of systemic change that could reshape how we think about the sector in years to come.
What's happening: Prices in the largest U.S. cities have stagnated for the first time since 2011, mortgage applications are falling and even ultra low interest rates have not been enough to lure buyers back to the market, data shows.
What it means: "Mortgage interest rates in many cities aren't the major challenge for house buyers anymore," Claudio Saputelli, head of real estate at UBS Global Wealth Management, said in the asset manager's annual Global Real Estate Bubble Index.
Why it matters: It's the end of the boom, Saputelli and Matthias Holzhey, head of Swiss real estate investments, write. The exponential rise in housing prices combined with a lack of major wage gains for average American workers over the last 3 decades may have finally topped the fast-growing urban housing market.
Details: Currently, the analysts see 7 cities at high risk of being in a real estate bubble, but more importantly they see a rethink of housing as an asset taking place across the world's developed economies.
A recent study of more than 1,200 adults who plan to buy toys this holiday found that almost half of those purchases will be made at online-only retailers like Amazon.
Watch this space: "American toy shoppers who have a Prime membership are over 200% more likely to make the bulk of their toy purchases online compared to Amazon subscribers who don’t have a Prime membership. They are also 125% more likely to buy mostly online compared to people who don’t have an Amazon account at all," data firm CivicScience found.
The manufacturing sectors of the U.S. and China are moving in opposite directions, and data released Monday shows the gap is widening.
On one side: China's Caixin purchasing managers' index, a private survey of the country’s manufacturing activity, had its strongest reading since February 2018. The improvement was driven largely by increased domestic demand, which has picked up as foreign sales continue to sink because of the trade war.
On the other side: The Chicago Business Barometer, which tracks Midwestern business activity steered mainly by trade and manufacturing, fell back into contraction in September. A measure of business confidence within the index dropped to its lowest level since 2009.
Of note: Looking at the chart, 50 is the level separating expansion from contraction.
What's next: Today, the Institute for Supply Management will publish its monthly U.S. manufacturing survey, which declined in August for the first time in 3 years.
Marijuana stocks have fallen hard in 2019 and short sellers have been increasing their positions, betting the sector is overvalued and primed for further losses.
The latest: Bank of America Merrill Lynch analysts Christopher Carey and Lisa Lewandowski downgraded Canada's Canopy Growth, the world's largest marijuana company, to neutral from buy, saying Wall Street expectations are "far too high."
What they're saying: While Carey and Lewandowski said they still see future growth ahead for both the company and the Canadian cannabis market, it's not enough to justify significant further price gains, they wrote in a note to clients.
Why it matters to the market: The tide looks to have turned on pot stocks this year, with 2 major ETFs that track the marijuana industry — the Horizons Marijuana Life Sciences ETF and ETFMG Alternative Harvest — losing about half their value since October 2018.